The government plans to raise GH¢7.73 billion this Friday February 21, 2025 through the issuance of the 91-day, 182-day, and 364-day bills.
This will cover GH¢7.24 billion in maturing bills.
However, the recent rejection of bids by the Treasury indicates that the government would not take all the bids that would be tendered.
This would compress excessive yields that have taken a nose dive for the last three weeks.
In a striking display of fiscal restraint, the Treasury rejected GH¢8.27 billion bids last week, marking its largest rejection since March 2023.
It accepted only GH¢9.43 billion from a total offer of GH¢17.70 billion, covering a target of GH¢8.07 billion and maturities worth GH¢7.54 billion.
This bold move led to yields on the 91, 182, and 364- day bills plummeting by 112 basis points, 88 basis points, and 130 basis points, to settle at 26.86%, 27.81%, and 29.07% respectively.
Analysts expect investors to reassess their yield expectations as the Treasury reinforces market discipline by rejecting high-yield bids and curbing excessive rate demands to contain borrowing costs.
This strategy to further is expected to drive yields further down.